q4 2015 havyard group asa
DESCRIPTION
Q4 2015 Havyard Group ASATRANSCRIPT
HAVYARD GROUP ASAFOURTH QUARTER RESULTS 2015
2FOURTH QUARTER 20 15
HAVYARD GROUP
HAVYARD GROUP ASA is a fully integrated Ship Technology
company and delivers products and services within the
complete value chain from vessel design to support
of vessels in operation. We focus on having the best
competence within all the vital segments of the value chain.
Our vision is Improving Life At Sea and the motivation
for our employees is to add value to and improve the
situation for all who use our products.
Havyard Group delivers ship designs, ship equipment
and construction of advanced vessels for offshore oil
production, renewable energy production, fishing and
fish farming for shipyards and shipowners worldwide.
HAVYARD GROUP ASA
P.O.Box 215
6099 Fosnavåg
Norway
Visiting address: Havilahuset,
Mjølstadnesvegen,
6092 Fosnavåg, Norway
Phone: +47 70 08 45 50
MMC FISH HANDLING & REFRIGERATION
HAVYARD MMC AS, dep. Fosnavåg
HAVYARD MMC AS dep. Vigra
HAVYARD MMC AS dep. Tromsø
HAVYARD MMC AS dep. Haugesund
MMC GREEN TECHNOLOGY AS
DESIGN & SOLUTIONS
HAVYARD DESIGN & SOLUTIONS AS, dep. Fosnavåg
HAVYARD POWER & SYSTEMS AS, dep. Ålesund
HAVYARD DESIGN & SOLUTIONS AS, dep. Stavanger
HAVYARD DESIGN & ENGINEERING Poland
HAVYARD DESIGN & ENGINEERING Rijeka d.o.o
HAVYARD South America ltda.
HAVYARD China
HAVYARD Far East
SHIP TECHNOLOGY
HAVYARD SHIP TECHNOLOGY AS, dep. Fosnavåg
HAVYARD SHIP TECHNOLOGY AS, dep. Leirvik
HAVYARD SHIP TECHNOLOGY AS, dep. Turkey
HAVYARD PRODUCTION & SERVICE Sp. z o.o.
NES POWER & SYSTEMS
NORWEGIAN ELECTRIC SYSTEMS AS
3FOURTH QUARTER 20 15
.
4FOURTH QUARTER 20 15
• EBIT of NOK –56.1 million and EBIT-margin of -17.8 % in fourth quarter of 2015. EBIT of NOK –63.2 million in 2015 with
an EBIT-margin of –3.7%
• EBIT-margin strongly affected by restructuring cost, lower activity than planned in most business areas, and non-recurring
items. The postponement of NB 126 have alone had a negative effect on the result for fourth quarter with about NOK 30
million.
• Impairment and value adjustment of financial assets related to ship investments in the offshore segment totalling NOK 50
millions in fourth quarter 2015. These effects explains a large proportion of the quarters total comprehensive income on
NOK -102 Million
• Delivery in the quarter
o NB 122, a AHTS Icebreaker to FEMCO (Russia)
o NB 124, a live fish carrier to Norsk Fisketransport AS (Norway)
POSTPONED DELIVERY
• Postponement of delivery NB 126 (PSV Ice) to Fafnir Offshore from March 2017 to June 2017.
• Postponement of delivery NB 123 to Marine Platforms Ltd from 2017 to 2018.
HIGHLIGHTS
OUTLOOKHavyard has succeeded with the diversification strategy, where we have developed and delivered products for fisheries,
aquaculture as well as the renewable energy sector. We expect good profitability on projects within these segments for
delivery in 2016 and 2017.
We experience good activity and are included in the final rounds of several new projects within these segments, but are
experience pressure on the price from “offshore capacity”. To secure future profitability we have started a strategic review
to be more profitable, to be able to adjust future volume and activity within these segments.
Very challenging market situation has given increased counterparty risk on the customer and supplier side.
Challenging cash flow situation on short term basis, but expects improvement during March / April in conjunction with
delivery of two hulls and agreed payments from the ship owner.
.
5FOURTH QUARTER 20 15
HIGHLIGHTS
6FOURTH QUARTER 20 15
HAVYARD 587 - NAMSOS
7FOURTH QUARTER 20 15
8FOURTH QUARTER 20 15
MNOK 2015 2014 Q4 15 Q4 14
Operating revenues 1 725 2 411 316 737
Cost of sales 1 197 1 764 214 591
Payroll expences 416 416 105 117
Other operating exp. 147 165 44 38
Operating expences 1 761 2 345 363 746
EBITDA -35 66 -48 -9
Depreciation 28 21 9 4
EBIT -63 45 -56 -13
Net financial -23 -6 -48 -2
Profit before tax -86 39 -105 -15
Financial result Havyard Group ASA
FINANCIAL SUMMARY
9FOURTH QUARTER 20 15
Group Key Figures
2015 2014 Q4 15 Q4 14
Operating revenue 1725 2411 316 737
EBITDA -35 66 -48 -9
EBIT -63 45 -56 -13
EBIT-margin -3,7 % 1,9 % -17,8 % 1-,8
Profit before tax -86 39 -105 -15
Earnings per share -2,72 1,24 -3,66 -0,52
NIBD 168 167 168 167
Working Capital 127 164 127 164
Operating revenue EBIT
15 16
-13
6
-11
-2
-56-60
-50
-40
-30
-20
-10
0
10
20
2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4
MNOK
696
548
737
563
353
493
316
0
100
200
300
400
500
600
700
800
2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4
MNOK
FINANCIAL SUMMARY
1 0FOURTH QUARTER 20 15
INCOME STATEMENT
The operating revenue for the Group in the fourth quarter of
2015 was NOK 315.9 million, compared to NOK 737.4 million in
the corresponding period of 2014. The decrease is mainly due
to lower activity at the yard in Leirvik. There have been two
vessels for outfitting in the fourth quarter 2015, and they have
been delivered in November and December. The operating
revenue for 2015 was NOK 1,725.4 million, compared to NOK
2,410.8 million in 2014.
For the fourth quarter of 2015, the Group recorded earnings
before interest and tax (EBIT) of NOK -56.1 million, while the
EBIT for the fourth quarter of 2014 was NOK -13.0 million. This
corresponded to an EBIT margin of -17.8 % in the fourth quarter
of 2015 compared to -1.8 % in the third quarter of 2014. The EBIT
for 2015 was NOK -63.2 million compared to NOK 45.3 million
in 2014. The corresponding margins were -3.7 % in 2015 and
1.9 % in 2014.
The margins for 2015 are affected by three loss projects in
the Ship Technology segment. Additionally, there was lower
capacity utilization for all areas and extraordinary warranty
costs beyond provisions for Havyard Ship Technology. The
postponement of NB 126 also have an impact on the margins
for 2015.
FINANCIAL POSITION
The total assets in the Group have decreased from NOK
1,736.4 million to NOK 1,354.0 million from the year end 2014
to year end 2015.
The total equity has decreased from NOK 596.3 million to
NOK 522.5 million from the year end 2014 to year end 2015.
The equity ratio has increased from 34 % in the end of 2014
to 39 % in the end of 2015. The main reason for the change
in equity is due to loss projects, capacity utilization and
postponement of NB 126.
Investments in financial assets and investments in associates
decreased from NOK 343.8 million at year-end 2014 to
NOK 270.2 million at the end of 2015. The reason for the
reduction is acquisitions in subsidiaries previously classified
as an associate and sale of shares in Fosnavåg Vekst. There
are also considerable impairment on two of the Groups
shipinvestments.
Current assets have increased from NOK 1,045.1 million in the
end of 2014 to NOK 695.4 million in the end of 2015.
Total liabilities are NOK 831.5 million in the end of 2015,
compared to NOK 1,140.0 million in 2014.
1 1FOURTH QUARTER 20 15
CASH FLOW
Aggregate cash flow from operating activities is positive
with NOK 8.6 million in 2015, compared to a negative cash
flow of NOK 146.1 million in 2014. The reason for the positive
cashflow is mainly because of accruals regarding increased
accounts receivables, reduced construction work in progress
and increased of accounts payables compared to 31.12.2014.
Aggregate cash flow from investing activities was negative
with NOK 23.2 million for 2015, compared to a positive cash
flow NOK 83.6 million in 2014. The cash flow from investments
in 2015 is mainly a result of the following factors:
• Negative effect of investment in a new equimpent of
approximately NOK 11.7 million
• Negative effect of investment in none current assets of
approximately NOK 14.3 million
• Positive effect of the sale of the investment in Fosnavåg
vekst AS at cost price of approx. NOK 12.2 million
• Negative effect of the acquisition in subsidiary
Norwegian Electric Systems AS of approx. NOK 18.3
million
Aggregate cash flow from financing activities is negative with
NOK 8.1 million in 2015, compared to a negative cash flow of
NOK 24.3 million in 2014. The negative cash flow in 2015 is
mainly a result of payment of dividend and interest costs.
ORDER STATUS, DELIVERIES AND BACKLOG
The order book is approximately NOK 2,537 million as of the
end of 2015. All segments in the Group need new order intake
to fill capacity in 2016. MMC Fish Handling & Refrigeration
and Havyard Design & Solutions segments increased their
order backlog, while the other segments had a reductions
compared to Q3.
During the fourth quarter 2015 the Group has reported
postponement of one offshore construction ship to Marine
Plattofrms Ltd from 2017 to 2018. In addition we reported the
postponement of a Havyard 833 WE platform supply vessel
from march 2016 to june 2017.
The order backlog includes one PSV, one Offshore windfarm
Service Operation Vessel (SOV), three AHTS Icebreakers and
one offshore construction vessel.
In addition to this, the order backlog includes design
contracts and equipment packages for vessels built at yards
worldwide.
(In January a new contract where signed for an additional
live fish carrier to Norsk Fisketransport AS for building at our
own shipyard in 2017 , and one larger repeat delivery for a
complete handling system for a live fish carrier. Total value
for the contracts are between NOK 300-400 millions)
More information regarding the order backlog and status is
specified under each segment.
Order backlog
0
500
1000
1500
2000
2500
3000
3500
2011 2012 2013 2014 2015 Q1 2015 Q2 2015 Q3 2015 Q4
MNOK
1 2FOURTH QUARTER 20 15
1 981
1338
21 -74
1,0 %
-5,5 %
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-500
-
500
1 000
1 500
2 000
2 500
2014 2015
EBIT
mar
gin
Rev
enue
& E
BIT
(NOK m
illion)
Operating revenue EBIT EBIT MARGIN
The operating revenue in the Ship Technology segment was
NOK 1,338 million in 2015, compared to NOK 1,981 million in
2014. The operating profit (EBIT) in the first three quarters
of 2015 was NOK -73.7 million. This is a significant decrease
from NOK 20.5 million in 2014. EBIT margins are decreased
from 1.0 % in 2014 to -5.5 % in 2015.
Main reason for the negative result is lower capacity
utilization and several loss prosjects. For 2015 there have
been extraordinary warranty costs beyond provisons, mainly
for prototype-design. The postponement of NB 126 also had
a negative effect.
The following vessels have been docked at the shipyard in
Leirvik for the outfitting phase during 2015:
• Newbuild no. 118, a prototype Havyard 832 SOV windmill
service vessel to ESVAGT. (delivered February)
• Newbuild no. 119, a sistership of 118, also for ESVAGT.
(delivered March)
• Newbuild no. 121, a fishing vessel of the Havyard 535 design
for Smaragd AS. (delivered July)
• Newbuild no. 122, an AHTS Icebreaker for Femco. (delivered
November)
• Newbuild no. 124, a live fish carrier for Norsk Fisketransport
AS. (delivered December)
The order backlog at the end of 2015 is NOK 2 006 million.
The order backlog includes one PSV, one Service Operation
Vessel (SOV), two AHTS Icebreakers and one offshore
construction vessel.
(In January a new contract where signed for an additional
live fish carrier to Norsk Fisketransport AS for delivery Q1 2017.
This will be the third vessel with Havyard 587 live fish carrier
design and fish handling system from MMC Fish Handling &
Refrigeration.)
SEGMENTSSHIP TECHNOLOGY
1 3FOURTH QUARTER 20 15
SEGMENTSDESIGN & SOLUTIONS
301
199
52
1
17,3 %
0,5 %0%
5%
10%
15%
20%
25%
-
50
100
150
200
250
300
350
2014 2015
EBIT
Mar
gin
Rev
enue
& E
BIT
(NOK M
illion)
Operating revenue EBIT EBIT MARGIN
For 2015 the operating revenue is NOK 199 million. This is a
decline of NOK 102 million from 2014. The reason for this is
mainly lower activity on projects than in the corresponding
period in 2014, and larger delivery of equipment packages in
the third and fourth quarter of 2014.
The operating result (EBIT) for 2015 is NOK 1 million compared
to NOK 52 million in 2014. The EBIT-margin has declined from
17.3 % in 2014 to 0,5 % in 2015. The main reason for the decline
in EBIT and EBIT-margin in 2015 is lower capacity utilization
than in 2014.
Total order backlog for this segment is approximately NOK
398 million, where approximately NOK 86 million is internal
deliveries. Total external order backlog is NOK 312 million.
Havyard Power & Systems (HPS) where from Q3 2015 under
the Havyard Design & Solution segment. HPS where earlier
reported under the Power and Systems segment. Comparable
numbers are adjusted for the change in segments.
1 4FOURTH QUARTER 20 15
SEGMENTSNES POWER & SYSTEMS
NES Power & systems segment has NOK 160 million in
operating revenue for 2015. The operating profit (EBIT) is NOK
1 million for 2015.
Total order backlog for this segment is approximately NOK
95 million, where approximately NOK 59 million is internal
deliveries. Total external order backlog is NOK 36 million.
Havyard Power & Systems (HPS) where from Q3 2015 in the
Design & Solutions segment. HPS was earlier in the Power &
Systems segment together with Norwegian Electric Systems
AS (NES) (from acquisition of NES in Q1 2015). This also reflect
the missing comparable numbers as NES was classified as
financial assets in 2014.
Havyard bought 12.6 % of the share in NES January 2015,
increasing the ownership from 37.9 % to 50.5 %. The price for
the 12.6 % was NOK 18.3 million. NES is included in the Power
& Systems segment from February 2015. Earlier Havyard’s
ownership in NES was presented under financial income. See
note 5 for more information.
-
160
- 1
0,0 % 0,6 %
0,0 %
5,0 %
10,0 %
15,0 %
20,0 %
25,0 %
-
50
100
150
200
250
2014 2015
EBIT
Mar
gin
Rev
enue
& E
BIT
(NOK M
illion)
Operating revenue EBIT EBIT MARGIN
1 5FOURTH QUARTER 20 15
SEGMENTSMMC FISH HANDLING & REFRIGERATION
SEGMENTSNES POWER & SYSTEMS
296
273
3 9
0,8 %
3,3 %
-5%
0%
5%
10%
15%
20%
25%
30%
35%
-50
-
50
100
150
200
250
300
350
2014 2015
EBIT
Mar
gin
Rev
enue
& E
BIT
(NOK M
illion)
Operating revenue EBIT EBIT MARGIN
The operating revenue has reduced from NOK 296 million
in 2014 to NOK 273 in 2015. The decrease of NOK 23 million
is mainly related to decreased capacity utilization in Q1 and
parts of Q2.
The operating profit (EBIT) of NOK 8.6 million in 2015 is an
increase from NOK 2.5 millions in 2014. EBIT-margin for 2015
is 3.3 %, compared to 0.8 % in 2014.
The order backlog for MMC is approximately NOK 184
million, where NOK 3 million is internal deliveries to the Ship
Technology segment. External order backlog is approximately
NOK 181 million.
(In January a new contract where signed for an additional
live fish carrier to Norsk Fisketransport AS for delivery Q1 2017.
This will be the third vessel with Havyard 587 live fish carrier
design and fish handling system from MMC Fish Handling
& Refrigeration. In addition MMC have signed a contract
for a complete fiish handling system for live fish carrier for
Sølvtrans, delived by Myklebust shipyard).
1 6FOURTH QUARTER 20 15
The Group’s average total sick leave in the 24-month period
January 2014 to December 2015 is 3.28%. The average for 2015
is 3.25%. The sick leave has been steadily decreasing during
2013 and 2014. En increase at the end of 2015 and start of 2015
has now turned to a lower level with an average of 2.63 % for
the second half of 2015. The reduction is a result of a long term
focus on Inclusive working condition, job presence during sick
leave and occupational health care.
During the last 12 months the Group has had a total of 11
injuries resulting in absence from work. This figure includes
the subcontractors at the shipyard in Leirvik. An extensive
action plan is implemented with the target of reducing injuries
both for own employees and subcontractors, and this has
reduced the number of injuries.
In addition to health and safety the Group is focusing on
quality. Internal audits in accordance with ISO 9001/ISO
14001, several supplier audits and audits from costumers were
performed in 2014 and this process continued in 2015. Quality
deviations are measured, documented in action lists and
handled as quickly and effectively as possible. Recertification
of Havyard Ship Technology AS was conducted Q4 2015 and
renewed approval was completed February 2016.
Sick leave Group 2014 and 2015
0,0 %
1,0 %
2,0 %
3,0 %
4,0 %
5,0 %
6,0 %
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEPT
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUNE
JULY
AUG
SEP
OKT
NOV
DES
Sick
Lea
ve in
%
Short time
Long time
Total
Average
HEALTH, SAFETY & QUALITY
1 7FOURTH QUARTER 20 15
HEALTH, SAFETY & QUALITY
1 8FOURTH QUARTER 20 15
PRINCIPAL RISKS AND UNCERTANTIES
Havyard Group defines operational risk as the ability to
deliver at the right time, with the right quality and at the right
cost. The delivery of vessels, design packages and equipment
in accordance with these parameters is a substantial risk
element, and is the most significant factor that affects
Havyard Group´s financial results.
Other risk factors are interest rates, exchange rates and our
customers’ ability to meet their obligations.
Havyard Group works systematically with risk management
in all its segments and subsidiaries. All managers are
responsible for risk management and internal control within
their business segment. Reference is made to the annual
report for 2014 for a further description of risk factor and risk
management.
Fosnavåg, 25 February 2016
The Board of Directors and CEO
Havyard Group ASA
1 9FOURTH QUARTER 20 15
PRINCIPAL RISKS AND UNCERTANTIES
20FOURTH QUARTER 20 15
(NOK 1,000) 2015 2014 2015 Q4 2014 Q4
(unaudited) (unaudited)
Sales revenues 1 719 106 2 401 597 314 684 732 995
Other operating revenues 6 336 9 208 1 245 4 445
Operating revenues 1 725 442 2 410 805 315 929 737 440
Cost of sales 1 197 236 1 763 601 214 459 591 360
Payroll expenses etc. 415 837 416 329 104 682 116 943
Other operating expenses 147 473 164 659 44 300 37 737
Operating expenses 1 760 546 2 344 589 363 441 746 040
Operating profit before depreciation and amortization - EBITDA -35 104 66 216 -47 512 -8 600
Depreciation 28 057 21 064 8 581 4 384
Operating profit - EBIT -63 161 45 152 -56 093 -12 984
Profit of purchase in associate 22 603 - - -
Financial income 19 209 20 256 -1 010 11 732
Impairment financial assets 30 010 - 30 010 -
Financial expenses 34 282 32 344 12 916 17 042
Share of profit/loss of associate -310 6 036 -4 490 3 465
Profit before tax -85 951 39 100 -104 519 -14 829
Income tax expense -26 801 9 089 -22 695 -1 524
Profit for the period -59 150 30 010 -81 824 -13 305
Attributable to :
Equity holders of parent -61 368 27 992 -82 485 -11 821
Non-controlling interest 2 218 2 018 661 -1 485
Total -59 150 30 010 -81 824 -13 306
Earnings per share (NOK) -2,72 1,24 -3,66 -0,52
CONSOLIDATED STATEMENT OF PROFIT OR LOSSHavyard Group ASA
2 1FOURTH QUARTER 20 15
(NOK 1,000) 2015 2014 2015 Q4 2014 Q4
(unaudited) (unaudited)
Profit for the period -59 150 30 010 -81 824 -13 305
Other comprehensive income
Items that will be reclassified to income statement
Translation differences -7 -189
Fair value adjustment avaliable-for-sale financial assets -19 990 -19 990
Total -19 997 - -20 179 -
Other comprehensive income -19 997 - -20 179 -
Total comprehensive income -79 147 30 010 -102 003 -13 305
Attributable to :
Equity holders of parent -81 457 27 992 -102 682 -11 821
Non-controlling interest 2 310 2 018 679 -1 485
Total -79 147 30 010 -102 003 -13 306
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Havyard Group ASA
22FOURTH QUARTER 20 15
(NOK 1,000)
ASSETS
2015 2014
(unaudited)
Non current assets
Goodwill 60 094 23 918
Licenses, patents and R&D 75 726 59 912
Property, plant and equipment 252 573 263 549
Investment in associates 75 691 88 190
Loan to associates 18 673 14 817
Investment in financial assets 110 030 172 071
Other non current receivable 65 774 68 827
Total non current assets 658 560 691 284
Current Assets
Inventory 50 075 40 673
Accounts receivables 83 467 79 123
Other receivables 103 853 88 274
Construction WIP in excess of prepayments 233 379 642 464
Cash and cash equivalents 224 629 194 562
Total Current Assets 695 403 1 045 096
TOTAL ASSETS 1 353 963 1 736 380
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONHavyard Group ASA
23FOURTH QUARTER 20 15
EQUITY AND LIABILITIES
2015 2014
(unaudited)
Equity
Share capital 1 126 1 126
Share premium reserve 5 463 5 463
Treasury shares -5 -7
Retained earnings 493 827 583 750
Non-controlling interest 22 097 6 009
Total equity 522 508 596 340
Long term liabilities
Deferred tax liability 33 239 48 447
Bond loan 148 898 146 941
Loans and borrowings, non-current 76 195 61 574
Other long-term liabilities 5 164 2 191
Total long term liabilities 263 496 259 153
Current liabilities
Accounts payables 156 601 149 267
Taxes payable 186 3 925
Provision for dividend - -
Public duties payables 52 413 19 310
Construction loans 87 286 515 540
Loans and borrowings, current 20 673 38 230
Prepayments in excess of construction WIP 43 634 53 164
Other current liabilities 207 167 101 451
Total current liabilities 567 960 880 887
Total liabilities 831 456 1 140 040
TOTAL EQUITY AND LIABILITIES 1 353 963 1 736 380
24FOURTH QUARTER 20 15
(NOK 1,000)
Share capital
Share premium
reserve
Treasury shares
Retained earnings
Total Non-controlling
interest
Total equity
1. January 2015 1 126 5 463 -7 583 750 590 332 6 009 596 341
Profit & loss 0 0 0 -61 368 -61 368 2 218 -59 150
Other comprehensive income 0 0 0 -20 089 -20 089 92 -19 997
Purchase/sale of treasury shares 0 0 2 408 410 0 410Purchase of subsidiaries 0 0 0 0 0 16 716 16 716
Other changes 0 0 0 1 198 1 198 -1 145 53
Dividends 0 0 0 -10 073 -10 073 -1 793 -11 866
31. December 2015 1 126 5 463 -5 493 828 500 412 22 097 522 509
Share capital
Share premium
reserve
Treasury shares
Retained earnings
Total Non-controlling
interest
Total equity
1. January 2014 1 126 5 462 -16 640 865 647 437 21 001 668 437
Profit & loss 0 0 0 27 992 27 992 2 018 30 010
Other comprehensive income 0 0 0 0 0 0 0
Purchase/sale of treasury shares 0 0 9 5 990 5 999 0 5 999
Put option minority interest 0 0 0 3 899 3 899 -17 011 -13 110
Dividends 0 0 0 -94 997 -94 997 0 -94 997
31. December 2014 1 126 5 462 -7 583 750 590 330 6 009 596 339
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYHavyard Group ASA
25FOURTH QUARTER 20 15
26FOURTH QUARTER 20 15
(NOK 1,000) 2015 2014 2015 Q4 2014 Q4
(Unaudited) (Unaudited)
CASH FLOW FROM OPERATIONS
Profit/(loss) before tax -85 951 39 100 -104 521 -21 377
Taxes paid -1 807 -57 903 - -30 982
Depreciation 28 057 21 064 8 581 4 384
Profit of purchase in associates -22 603 - - -
Impairment 30 010 - 30 010 -
Share of (profit)/loss from associates -310 -6 036 3 870 2 164
Changes in inventory -4 118 -1 801 5 567 -4 884
Net changes in construction loans -428 254 380 752 -393 095 -144 533
Changes in accounts receivables/construction WIP 478 333 -377 893 543 718 107 226
Changes in accounts payable -37 505 20 989 28 696 38 909
Changes in prepayments from customers -11 231 -179 638 -92 966 -18 692
Changes in other current receivables/liabilities 63 943 15 233 44 802 9 366
Net cash flow from/(to) operating activities 8 564 -146 133 74 663 -58 419
CASH FLOW FROM INVESTMENTS
Investments in property, plant and equipment -11 379 -42 585 -8 087 -9 710
Investment in intangible assets -14 308 -20 290 -7 240 -9 618
Investment in/disposal of financial assets 12 042 136 824 - 56 201
Purchase of subsidiaries -18 270 - - -
Interest income 9 548 12 626 1 442 3 740
Dividends received - 1 990 - 1 990
Changes in long term receivables -803 -4 968 4 646 -3 543
Net cash flow used in investing activities -23 170 83 597 -9 239 39 060
CASH FLOW FROM FINANCING ACTIVITIES
New long term debt 29 534 146 400 12 171 -
Repayment long term debt -9 983 -43 020 -5 910 2 764
Purchase of minority shares in Havyard MMC - -25 191 - -
Interest costs -16 205 -13 475 -2 096 -4 839
Purchase/sale of treasury shares 410 5 999 - -
Dividends -11 866 -94 996 -1 793 -70 000
Net cash flow from/ (used in) financing activities -8 110 -24 283 2 372 -72 075
- -
Net change in cash and cash equivalents -22 716 -86 819 67 795 -91 434
- -
Cash and cash equivalents at start of the period 194 562 281 381 156 834 285 997
Cash and cash equivalents from purchase of subsidiaries 52 783 - -
Cash and cash equivalents at end of the period 224 629 194 562 224 629 194 563
Restricted bank deposits at the end of the period 94 540 114 377 94 540 114 377
Available cash and cash equivalents at the end of the period 130 089 80 185 130 089 80 185
CONSOLIDATED STATEMENT OF CASHFLOWHavyard Group ASA
27FOURTH QUARTER 20 15
1. General informationHavyard Group ASA is a public limited company based in Norway, and its head office is located in Fosnavåg, Herøy. The group in total
employs 750 people as of 31 Desember 2015, of whom 634 are employed in Norway.
Havyard Group ASA was incorporated as a public limited company 25 February 2014, and was listed on the Oslo Stock Exchange 1 July
2014.
2. Basis of preparation and changes to the Group’s accounting policiesThe Interim Condensed Consolidated Financial Statements for the period ended 31 Desember 2015 have been prepared in accordance
with IAS 34 Interim Financial Reporting. The Interim Condensed Consolidated Financial Statements are not subject to audit, and do not
include all the information and disclosures required in the annual Financial Statements. It should be read in conjunction with the Group’s
annual Financial Statements as of 31 December 2014.
The same use of estimates has been applied as in the Financial Statements for 2014.
3. Segment 2015 Q4
(NOK 1,000) Ship Technology
Design & Solution
NES Power & Systems
MMC Elimination / Other
Havyard Group
Total operating revenue 309 050 32 950 50 666 60 684 (137 422) 315 928
Operating profit /loss EBITDA (40 247) (10 749) 2 571 1 808 (898) (47 514)
Depreciation 3 098 1 065 1 222 2 582 615 8 582
Operating profit/(loss) (EBIT) (43 346) (11 814) 1 349 (774) (1 513) (56 098)
Net financial items (3 073) (9 981) (1 109) (1 232) (28 542) (43 936)
Share of profit/(loss) from associate - - - - (336) (336)
Profit/(Loss) before tax (46 419) (21 794) 240 (2 005) (34 543) (104 521)
"Elimination / Other" contains parent company items and elimination of intra-group transactions.
2015
(NOK 1,000) Ship Technology
Design & Solution
NES Power & Systems
MMC Elimination / Other
Havyard Group
Total operating revenue 1 338 242 198 537 159 794 272 973 (244 105) 1 725 441
Operating profit /loss EBITDA (60 330) 4 824 5 015 14 313 1 072 (35 105)
Depreciation 13 378 3 850 4 336 5 675 819 28 058
Operating profit/(loss) (EBIT) (73 708) 974 679 8 638 253 (63 162)
Net financial items 681 14 205 3 053 (5 960) (34 460) (22 480)
Share of profit/(loss) from associate - - - - (307) (307)
Profit/(Loss) before tax (73 027) 15 179 3 732 2 679 (34 514) (85 951)
"Elimination / Other" contains parent company items and elimination of intra-group transactions.
NOTES TO CONSOLIDATED FINANCIAL STATEMENT Havyard Group ASA
28FOURTH QUARTER 20 15
2014 Q4
(NOK 1,000) Ship Technology
Design & Solution NES Power & Systems
MMC Elimination / Other
Havyard Group
Total operating revenue 609 909 104 091 - 65 052 (41 613) 737 439
Operating profit /loss EBITDA (11 662) 15 502 - (7 120) (6 239) (9 519)
Depreciation 3 268 865 - 77 174 4 384
Operating profit/(loss) (EBIT) (14 930) 14 637 - (7 197) (6 413) (13 903)
Net financial items 1 213 (2 771) - (986) (2 767) (5 311)
Share of profit/(loss) from associate - - - - (2 164) (2 164)
Profit/(Loss) before tax (13 717) 11 866 - (8 183) (11 344) (21 378)
"Elimination / Other" contains parent company items and elimination of intra-group transactions.
2014
(NOK 1,000) Ship Technology
Design & Solution NES Power & Systems
MMC Elimination / Other
Havyard Group
Total operating revenue 1 981 155 300 585 - 296 084 (167 019) 2 410 805
Operating profit /loss EBITDA 32 628 55 797 - 7 352 (29 561) 66 216
Depreciation 12 079 3 681 - 4 863 441 21 064
Operating profit/(loss) (EBIT) 20 549 52 116 - 2 489 (30 002) 45 152
Net financial items (104) (4 834) - (5 955) (1 194) (12 089)
Share of profit/(loss) from associate - - - - 6 036 6 036
Profit/(Loss) before tax 20 445 47 282 - (3 466) (25 160) 39 099
Elimination/Other includes IPO costs of NOK 15 million "Elimination / Other" contains parent company items and elimination of intra-group transactions.
4. Non current financial investments
2014
Company Ownership share/ voting share
Business office
Equity as of last year (100%)
Result as of last year (100%)
Carrying amount
P/F 6. September 2006 10.9% Færøyene 526 668 134 107 61 818
Vestland Offshore Invest AS 16.8% Torangsvåg 563 254 -14 614 80 187
Other non-current financial investments 30 066
Carrying amount as of 31.12.14 172 071
2015
Company Ownership share / voting share
Business office
Equity as of last year (100%)
Result as of last year (100%)
Carrying amount
P/F 6. September 2006 10.9% Færøyene 673 975 97 112 36 818
Vestland Offshore Invest AS 16.8% Torangsvåg 583 632 20 379 55 187
Other non-current financial investments 18 024
Carrying amount as of 31.12.15 110 029
All investments are unquoted equity shares and are classified as level 3 investments.
Changes in carrying amount from 31.12.14 to 31.12.15:
Level 3 investments 31.12.14 172 071
Sale of share in Fosnavåg Vekst -12 150
Fair value adjustment -19 990
Impairment -30 010
Investment in Rhea Capital III AS 109
Level 3 investments 31.12.15 110 029
29FOURTH QUARTER 20 15
5. Acquisition of subsidiariesOn 26 January 2015, Havyard Group ASA ("Havyard") acquired 12.6 % of the shares in Norwegian Electric Systems AS ("NES") for NOK 18.3 million,
increasing its ownership in NES to 50.5 %. The acquisition is paid in cash and is financed from existing cash balance in Havyard Group ASA.
Norwegian Electric Systems AS is a high-tech electrical company with a focus on diesel electric and hybrid electric systems for the global maritime
market. The company employs 36 persons, and delivers main switchboards, generators, motors and complete systems including engineering.
Securing majority ownership in NES represents an important step in Havyard´s strategic growth, and is consistent with a long term strategy in
Havyard of controlling larger parts of the value chain. It also secures that the two companies will obtain synergies, especially within product
development and production.
The acquisition date for accounting purposes is set to 1 February 2015. The acquisition is regarded as a business combination and has been
accounted for using the purchase price method of accounting in accordance with IFRS 3. A purchase price allocation (PPA) has been performed
to allocate the cash consideration to fair value of assets and liabilities from Norwegian Electric Systems AS. Fair value is determined based on
guidance in IFRS 13.
The acquisition consists of:
Book value previously owned shares 17 018
Profit on previously owned shares 22 603
Cash decreased for control premium 13 270
Total acquisition for allocation 52 891
The recognised amounts of assets and liabilities assumed as at the date of the acquisition were as follows.
Amounts in NOK 1000 01.02.15
R&D 5 505
Equipment and other fixed assets 2 701
Inventories 5 284
Trade accounts payable 49 278
Other short-term receivables 26 652
Cash and cash equivalents 52 783
Total assets 142 205
Deferred tax 8 995
Trade creditors 37 085
Tax payable 1 310
Public duties payable 2 343
Other short-term liabilities 59 955
Total liabilities 108 688
Total identifiable net assets at fair value 33 517
Group share (50,5%) 16 716
Goodwill arising on acquisition 36 175
Share of identifiable added value at net value 52 891
30FOURTH QUARTER 20 15
6. Share capital and share information
2015 Q4 2014
Number of ordinary shares 22 528 320 22 528 320
Par value (NOK) 0,05 0,05
Share capital (NOK) 1 126 416 1 126 416
All shares have equal rights.
2015The Group has paid a dividend of MNOK 10.1 in March 2015.
2014The General meeting held 26.03.14 decided to split the shares in the ratio 1:20. After the split, the number of shares is 22 528 320. The nominal amount is NOK 0.05.
Dividends and group contributionsThe Group has paid a dividend of MNOK 60.0 in October 2014, and MNOK 10.1 in December 2014. In addition, the Group has paid dividend of MNOK 24.8 based on the 2013 financial statement.
Shareholders as of 31.12.2015 Controlled by Number of shares Ownership
Havila Holding AS 14 300 000 63,5 %
Geir Johan Bakke AS Geir Johan Bakke (CEO) 1 202 520 5,3 %
SEB Private Bank S.A. (Nom) 498 170 2,2 %
Morgan Stanley & CO. LLC (Nom) 495 131 2,2 %
Goldman Sachs & CO Equity (Nom) 489 308 2,2 %
Erle Invest AS 406 538 1,8 %
MSIP Equity 334 331 1,5 %
Goldman Sachs Int. equity (Nom) 295 234 1,3 %
Solsten Investment Funds PLC 269 500 1,2 %
Jonfinn Ulfstein 242 980 1,1 %
Arve Helsem Leine 242 980 1,1 %
Stig Magne Espeseth 242 980 1,1 %
Other shareholders (<1 %) 3 508 648 15,6 %
Number of shares 22 528 320 100,0 %
Ultimate controlling company of the Group is Havila Holding AS. Boardmembers Hege Sævik Rabben and Vegard Sævik have indirect owner-ship in the group through their ownership in Havila Holding AS. Parent company Havila Holding AS is a limited company based in Norway, and its head office is located in Fosnavåg, Herøy.
The goodwill arises principally because of expected synergies, especially within product development and production.
The purchase price allocation is preliminary and may be adjusted during the year.
From the date of acquisition to 31 September 2015 NES contributed NOK 158.5 million to group operating revenues and NOK 4.5 million
to group profit. If the acquisition had taken place at the beginning of the year, Havyard group operating revenues and profit of the year
2015 would have been NOK 175.8 million and NOK 4.8 million, respectively.
3 1FOURTH QUARTER 20 15
www.havyard.com
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yard
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